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Ashutosh Kumar February 25, 2020
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5 Use Case of Blockchain in Supply Chain Industry

Blockchain has already proved its worth for fintech as well as the healthcare industry. And it seems that it is likely to become the solutions to the many problems that are faced by small and large scale industries today.

We have already covered the benefits of using Blockchain technology in the Supply chain industry. Supply Chain, being one of the largest industry has many use cases where Blockchain technology can be applied in order to achieve better and enhanced results. So let’s get started with the use cases of Blockchain in the supply chain industry that includes food, automotive and pharmaceutical supply chain.

The tracking of goods from the origin point and improved traceability in the supply chain industry is ensured by the application of Blockchain Technology.

Here are some of the most important supply chain industries where blockchain can be applied.

Automotive Supply Chain Industry

Food Supply Chain

Seafood Supply Chain

Coffee Supply Chain

Drugs and Pharmaceuticals Supply Chain

In this article, you will know about 5 use cases of Blockchain in Supply Chain Industry.

5 Use Case of Blockchain in Supply Chain Industry

5 use case of Blockchain technology in supply chain industries are as follows:

Automotive Supply Chain Industry

The automotive supply chain industry involves multiple participants in its entire process. From suppliers and manufacturers to sellers and customers the supply chain network becomes more and more complex with an increasing number of participants.

Blockchain technology application can be utilized for enabling transparency over the entire process to deal with multiple parties. With transparency across the entire process, automotive suppliers could protect their brands from duplicate products that will allow them to deliver quality customer value by creating a customer-centric business model.

Another issue with the Automotive supply chain is the introduction of counterfeit spare parts in the middle of the process. These products are introduced in the process either directly or by the involved participants. This damages the brand reputation and brings dissatisfaction to the end customers. Blockchain technology could identify each spare parts and products uniquely and can represent them digitally. Blockchain, being a shared network allows sharing of digital identification with multiple parties that adds transparency to the supply chain network.

Accurate and real-time information of the products is an essential factor that can allow making the automotive supply chain more efficient. Using Blockchain the current complex tracking system can be made efficient for better functioning of the supply chain. It can help to share accurate and real-time information to the parties involved who can check the current status of the spare parts or products. The shared data lowers the settlement period by ensuring visibility and transparency through the exchange of data.

Food Supply Chain

With the increase of food tech companies, the food supply chain industry complexities are increasing gradually.

Lack of data and traceability make food safety issues even worse. It takes many months for the identification of the source of contamination that ultimately leads to an increase in the number of sick people followed by loss of revenues and wastage of food.

It has now become a crucial thing for the food brands to provide information related to the food products to the consumers. This helps the customer to be aware of and trust the brands from which they purchase food products.

With Blockchain tracking the food products in the supply chain, the producers can ensure the originality and quality of products by identifying the attempts to tamper the food items within the supply chain. If any cases of tampering occur the supplier can be immediately informed and can take action even before the food items can reach their destination.

If somehow the products make their way to the stores, the damaged products can easily be identified and replaced instead of checking the whole batch of supplies. Blockchain technology will the food industry to provide transparency and real-time tracking to its customers which would, in turn, help those brands to increase its value among its customers.

Seafood Supply Chain

The seafood supply chain is among those industries which are prone to making more errors due to lack of a transparent system. The seafood supply chain is mainly undergoing the following issues:

manual record-keeping

improper food storage conditions

mislabelling frauds

prevalence of unregulated practices

Due to these issues the seafood supply chain is becoming more complex and more prone to errors. The bad quality and lack of security in the entire process affects the industry’s economic value. Increasing frauds affect the trust and relations between the customers and vendors.

With Blockchain utility, this industry can track seafood like fish right from its production until its distribution. With live tracking, the location and the time of the seafood products can be sent to the blockchain hence, creating a comprehensive record of the products. This record can be further utilized to detect any kind of fraud within the supply chain.

Coffee Supply Chain

The easier is to take a sip of coffee the more complex is its supply chain process.

Blockchain technology could be applied to this industry to ensure direct payments to the farmers who generally reside in remote developing areas thereby ensuring more productivity. The transparency provided by blockchain technology makes the data available to the customers which makes it easy to track the source of the coffee they consume.

Drugs and Pharmaceuticals Supply Chain

The pharmaceutical supply chain is one such industry that can benefit a lot from Blockchain technology. Counterfeit medicines that risk human life make their way easily in the entire process without coming into detection. Many nations are facing the problem of counterfeit drugs which constitutes around 10 to 30 percent of the total medicine sale. Thus it has become crucial for pharmaceutical industries to improve the security and transparency of the pharmaceutical supply chain industry.

The introduction of Blockchain in the healthcare supply chain will allow keeping the records secured in digital blocks. The secured digital blocks can be updated automatically whenever the drugs are transferred from one place to another. The immutable technology further allows checking whether there have been any counterfeiting efforts thereby adding security to the product.